Tata Steel secured a significant interim relief as the Jharkhand High Court granted a stay on all proceedings related to a substantial GST demand order. The original order, dated December 18, 2025, demanded payment of ₹493.35 crore in tax plus significant penalties. The High Court heard the matter on March 24, 2026, and directed the matter to be listed again on April 15, 2026, providing immediate respite to the Company.
Background of Tax Demand
Tata Steel Limited had previously disclosed receiving a Show Cause Notice (SCN) on June 27, 2025, from the Central Tax Office in Ranchi. This notice proposed the disallowance of Input Tax Credit (ITC) for the period spanning FY2018-19 through FY2022-23. The total GST amount proposed for demand and recovery was ₹1007,54,83,342/-. Since the Company had already paid ₹514,19,36,211/- in the normal course of business, the disputed exposure amounted to ₹493,35,47,131/-.
Adjudication and Legal Challenge
Subsequently, an Adjudication Order was received on December 19, 2025, directing the payment of the disputed tax amount of ₹493,35,47,131, along with a penalty of ₹638,82,62,185 and applicable interest. In response, the Company filed a Writ Petition before the Hon’ble High Court of Jharkhand on March 11, 2026, challenging the Commissioner’s Order.
Current Status: Stay Granted
The matter was heard by the Hon’ble High Court on March 24, 2026. Based on the Order issued on March 25, 2026, the High Court has granted a stay on all further proceedings related to this tax dispute until the next date of hearing. The Court has scheduled the next listing for the Writ Petition on April 15, 2026, confirming immediate relief for Tata Steel.
Source: BSE
